IOC GPS Renewables Secures $95 Million Debt Financing for Nine CBG Plants in FY27

IOC GPS Renewables Private Ltd (IGRPL), the joint venture between Indian Oil Corporation (IOC) and GPS Renewables, has secured $95 million in debt financing from an Indian bank. This marks the largest single-bank debt in India’s compressed biogas (CBG) sector and the first fully non-recourse loan. The funds will support nine CBG plants across four states, using paddy straw to produce renewable natural gas and reduce stubble burning.

Details of the $95 Million Debt Financing

The financing highlights investor confidence in India’s circular economy. Parag Parikh, CEO of GPSR Arya and Group CFO of GPS Renewables, told CNBC TV18 that financial closure for the nine projects attracted strong interest. “When we ventured into this, we looked at tying up and achieving financial closure for these nine projects, and we received very encouraging interest,” he said.

Arya provides 50% equity as developer. Total cost for the plants is about ₹1,200 crore. Revenue will stem from CBG sales and EPC services.

Locations and Capacity of the CBG Plants

The plants include four in Haryana, three in Uttar Pradesh, one in Chhattisgarh, and one in Andhra Pradesh. Each will handle 15 tonnes of paddy straw daily.

Combined output reaches 135 tonnes of CBG per day. These facilities advance sustainable waste use. Commissioning is set for end-FY27, leveraging quick sector timelines for scaling.

Technology and Environmental Impact

Anaerobic digestion processes paddy straw’s lignin into CBG. Parikh noted, “The lignin component of the paddy straw is processed through anaerobic digestion technology. Through this process, compressed biogas is produced.”

This curbs stubble burning and air pollution. It aids India’s low-carbon shift via waste-to-fuel conversion.

Indian Oil Corporation Share Price Performance

Indian Oil Corporation share price closed at ₹153.85 on NSE, up 0.61% on October 20, 2025. The range was ₹152.71–₹154.35; volume hit 5,562,080 shares.

Market cap was ₹2.119 trillion. Year-to-date gains stood at 15.22%, offsetting a 4.94% annual drop.

Read More: Crude Oil Prices Continue to Slip Amidst US-China Trade Tensions.

Conclusion

IOC GPS Renewables’ $95 million financing advances nine CBG plants for FY27, tackling stubble burning with paddy straw. The pioneering non-recourse loan boosts sector viability. Plans for 10–11 more projects promise renewable growth. This strengthens IOC’s circular economy role.

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